Innovation, Technology, and Entrepreneurship Journal

Articles

Digital Entrepreneurship Readiness, Innovation Mindset, and Sustainable Business Performance: Unraveling The Mediating Role of Market Orientation

Septian Dwi Cahyo , Vincentia Indah Puspita Sari , Kuwatno Kuwatno

Published
30 August 2026

Vol. 3 No. 2 (2026)
Pages

DOI

Open Access
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Abstract

This study examines the effects of digital entrepreneurship readiness and innovation mindset on sustainable business performance, with market orientation serving as a mediating mechanism. The study is motivated by the persistent challenge faced by Micro, Small, and Medium Enterprises (MSMEs) in transforming digital adoption and innovative capabilities into sustainable performance outcomes. Although previous studies have highlighted the importance of digital readiness and innovation, limited research has explained the mechanism through which these resources contribute to sustainability, particularly among MSMEs in developing economies. A quantitative approach was employed using survey data collected from 110 MSMEs in Kendal Regency, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS 8.0. The findings reveal that digital entrepreneurship readiness and innovation mindset positively and significantly influence market orientation and sustainable business performance. Furthermore, market orientation partially mediates the relationships between digital entrepreneurship readiness, innovation mindset, and sustainable business performance. This study contributes theoretically by extending the Resource-Based View and Dynamic Capability perspectives through the integration of digital resources, cognitive capabilities, and market-oriented mechanisms. Practically, the findings suggest that MSME owners and policymakers should strengthen digital capability development and innovation-oriented strategies to achieve long-term business sustainability.

Keywords

Digital Entrepreneurship Readiness; Innovation Mindset; Market Orientation; Sustainable Business Performance; MSMEs

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Publication Information
Published 30 August 2026
Section Articles
Copyright Copyright (c) 2026 Innovation, Technology, and Entrepreneurship Journal
Keywords
  • Digital Entrepreneurship Readiness
  • Innovation Mindset
  • Market Orientation
  • Sustainable Business Performance
  • MSMEs
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